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KKR, Goldman Bail on Harman

Shares plummeted more than 20% after the $8 billion buyout collapsed.

Updated from 9:44 a.m. EDT

Audio system maker

Harman International


on late Friday confirmed that two potential buyers intended to pull out of an $8 million buyout deal.

Kohlberg Kravis Roberts and

Goldman Sachs

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told the company they believe "a material adverse change" had affected Harman's business and that the company had breached the merger agreement, Harman said in a press release shortly before the closing bell.

Harman said it "disagrees that a material adverse change has occurred or that it has breached the merger agreement."

The company's shares had plummeted more than 20% Friday, after

The Wall Street Journal

, citing sources familiar with the deal, reported KKR and Goldman were having second thoughts.

Shares fell $23.45 to $88.80.